BYD Surpasses Tesla in Quarterly Revenue for the First Time

BYD, China’s leading electric vehicle (EV) manufacturer, achieved a significant milestone by surpassing Tesla in quarterly revenue for the first time.

In the third quarter, BYD’s revenue surged by 24% year-on-year, reaching 201.1 billion yuan (US$37.4 billion), exceeding Tesla’s revenue of US$25.2 billion during the same period. Although BYD’s revenue came in slightly below market expectations, the company sold a record 1.12 million electric and plug-in hybrid vehicles, driving an 11.5% increase in net profit to 11.6 billion yuan. Despite this growth, Tesla still outpaced BYD in net profit, earning US$2.2 billion.

BYD and Tesla continue to disrupt the traditional automotive industry, posing significant competition to legacy manufacturers such as Volkswagen, General Motors, and Stellantis. BYD’s success, however, is largely attributed to its hybrid vehicle lineup, which has insulated it from the cooling demand for pure electric cars. In contrast, Tesla’s EV-only lineup is showing signs of stagnation, as the company focuses more on Cybertruck production and its partial automation system rather than expanding its vehicle offerings.

BYD’s Hybrid Strategy and Vertical Integration Provide a Competitive Edge

One of BYD’s key strengths lies in its hybrid vehicle technology, with some models boasting ranges exceeding 2,000 km due to upgraded powertrains. This hybrid dominance has contributed significantly to the company’s revenue growth. Moreover, BYD’s vertically integrated supply chain allows the company to produce a large portion of its vehicle components in-house, giving it a cost and scalability advantage over competitors like Tesla.

While Tesla remains the world’s most valuable carmaker, BYD has become the third-largest automaker by market value, trailing only Toyota and ahead of major players like Volkswagen and Mercedes-Benz.

Domestically, BYD has benefited from strong demand in China, fueled by national and local government subsidies encouraging consumers to switch from gas-powered vehicles to EVs and hybrids. This domestic growth has cushioned BYD from external challenges, including new European Union tariffs of up to 45% on Chinese-made EVs. Despite these international hurdles, BYD remains on track to meet its revised annual sales target of four million vehicles by the end of 2024, positioning itself for a strong final quarter.